Annual report 2020 eng

ANNUAL REPORT 2020 4 Dear Brothers and Sisters, Valued Shareholders Peace, Mercy and Blessings of God upon You: We are pleased towelcome you againwith our first meetings in the newyear, after a year full of challenges on all local, regional and international scales, and appeal to theAlmighty God to bless us and youwith all goodness, success and prosperity, and for the present year 2021 to be a year of transformation in the journey of Mazaya Company towards new prospects. During this year, we look forward to upgrading the Company'sWorking System on all the administrative, operational and financial scales, and in line with the changes of the stage and rapid developments witnessed by the entire world. Valuable Audience, The entire world, of all sects and institutions, witnessed in 2020 the outspread of the novel corona epidemic, which had a significant negative effect on all the economies and world markets, particularly the services, tourism and aviation sectors and their support sectors, which cast its shadows on the markets and economic activities in our Arab region and the Arabian Gulf. This has started with the effects of the precautionary measures adopted by all the world countries to control the spread of the epidemic and protection of their citizens, to the significant shrinking resulting from the slowdown in the markets and economies as a result of the spread of this epidemic. This has negatively reflected on the real estate markets with all their products, whether real estate development processes, sales, leasing or property management. However, with the blessing of God, we have touched upon these changes since their beginnings and initiated controlling the negative effects on the Company's operations as much as possible. With the efforts of the Board of Directors members and the Company's administrative and executive team, the Company was able to lay down and implement a realistic action plan based on a number of strategic solutions in line with the circumstances to address such challenges and their negative effects, starting with the support and preservation of the Company real estate property tenants base, as well as endeavor to implement the sales operations targeted at managing the Company's cash flows and reducing its expenditures in order ot control such negative effects on the Company's financial position. In 2020, the Company's action plan relies mainly on the management of the crises, making it an exceptional year by all standards, as a result of the outspread of the novel corona virus epidemic. The plan was based on three main foundations, through which the Company aimed at reducing the negative effect on the Company's operations as a result of the pandemic. The first foundationof the actionplan aimed at preserving the sustainable liquidity stability resulting fromthe leasing operations. The second foundation comprised the reduction of the Company's expenditures and costs to reduce its operational and administrative costs. The third foundation is reflected in the management of the Company's substantial liabilities towards the Company third party creditors, such as the banks, key suppliers and others, in order to establish the required balance between such matters in the form which supports the durability of the Company's financial position and its cash flows. Furthermore, Mazaya Company was able to foster its status in the medical real estate sector in the State of Kuwait through its new real estate projects in the medical sector, which it started in 2020. The Company has also succeeded, despite this crisis, to realize real estate sales during the year. MESSAGE FROM CHAIRMAN Mr. Rashid Al Nafisi Chairman